AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
84.45 USD
+1.66 (+2.01%)
84.25 USD
-0.2 (-0.24%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 71 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
Each year in the past 5 years AIR has been profitable.
In the past 5 years AIR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.99%, AIR perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
AIR has a Return On Equity (2.31%) which is in line with its industry peers.
AIR's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. AIR outperforms 74.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIR is in line with the industry average of 8.60%.
The last Return On Invested Capital (8.79%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
With a Profit Margin value of 1.01%, AIR perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
AIR's Profit Margin has improved in the last couple of years.
The Operating Margin of AIR (9.31%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AIR has grown nicely.
AIR has a worse Gross Margin (19.04%) than 66.20% of its industry peers.
AIR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
Compared to 1 year ago, AIR has more shares outstanding
Compared to 5 years ago, AIR has more shares outstanding
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
AIR has an Altman-Z score of 3.35. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
AIR has a Altman-Z score (3.35) which is in line with its industry peers.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
AIR's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. AIR is outperformed by 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.35 |
ROIC/WACC0.89
WACC9.93%
2.3 Liquidity
AIR has a Current Ratio of 2.91. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
AIR has a Current ratio (2.91) which is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
The Quick ratio of AIR (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
Measured over the past years, AIR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.75% on average per year.
Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 17.59% in the last year.
The Revenue has been growing slightly by 6.06% on average over the past years.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 16.18% on average over the next years. This is quite good.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue Next Year15.84%
Revenue Next 2Y13.09%
Revenue Next 3Y10.44%
Revenue Next 5Y1.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.45, AIR is valued on the expensive side.
Based on the Price/Earnings ratio, AIR is valued cheaper than 92.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. AIR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.95, the valuation of AIR can be described as correct.
AIR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 95.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, AIR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 95.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AIR may justify a higher PE ratio.
AIR's earnings are expected to grow with 16.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)1.6
EPS Next 2Y16.51%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
No dividends for AIR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
84.45
+1.66 (+2.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.92%
Market Cap3.34B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target92.48 (9.51%)
Short Float %3.12%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)4.12%
PT rev (3m)9.13%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)6.49%
Revenue NY rev (1m)4.77%
Revenue NY rev (3m)9.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 15.95 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | 340.9 | ||
| P/B | 2.67 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)4.13
EY4.89%
EPS(NY)5.29
Fwd EY6.27%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.31
PEG (5Y)1.6
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.35 |
F-Score6
WACC9.93%
ROIC/WACC0.89
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.63%
EPS Next 2Y16.51%
EPS Next 3Y16.18%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year15.84%
Revenue Next 2Y13.09%
Revenue Next 3Y10.44%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year47.08%
EBIT Next 3Y22.53%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
What is the valuation status of AAR CORP (AIR) stock?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
How financially healthy is AAR CORP?
The financial health rating of AAR CORP (AIR) is 4 / 10.
What is the expected EPS growth for AAR CORP (AIR) stock?
The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 15.63% in the next year.